Rayford v. Cmty. Dev. Auth. of Madison, Appeal No. 2017AP1858
| Decision Date | 28 February 2019 |
| Docket Number | Appeal No. 2017AP1858 |
| Citation | 386 Wis.2d 351,2019 WI App 15,927 N.W.2d 153 (Table) |
| Parties | Charles RAYFORD, Plaintiff-Appellant, v. COMMUNITY DEVELOPMENT AUTHORITY OF the CITY OF MADISON, Defendant-Respondent. |
| Court | Wisconsin Court of Appeals |
¶1 Charles Rayford received housing assistance benefits through a federal program administered by the Community Development Authority of the City of Madison (CDA). Because of a program rule violation by Rayford, the CDA notified Rayford that his benefits would be terminated. Rayford appealed that decision, and a hearing officer upheld the CDA’s decision to terminate Rayford’s benefits. Rayford brought a certiorari action in circuit court, and the court remanded for a second hearing. Upon remand, the hearing officer again upheld the CDA’s decision to terminate Rayford’s benefits. Rayford filed a second certiorari action, and the circuit court again remanded the matter. This time a different hearing officer reversed the CDA’s termination decision and ordered that Rayford’s benefits be commenced again.
¶2 Having ultimately prevailed in obtaining reinstatement of his benefits, Rayford initiated, pursuant to 42 U.S.C. § 1983, this action in the Dane County Circuit Court for damages related to the loss of his housing assistance benefits for a portion of the time he was denied benefits. The parties filed cross-motions for summary judgment. The circuit court granted summary judgment in favor of the CDA and dismissed Rayford’s claims. Rayford appeals. We affirm the order of the circuit court and conclude that the CDA did not violate Rayford’s constitutional rights because: (1) we reject Rayford’s argument that the actions of the CDA were not random and unauthorized; and (2) Rayford had available to him an adequate post-deprivation remedy of certiorari review in state court.
¶3 There is no material dispute as to the following facts.
¶4 The CDA is a body politic authorized to operate and administer a federal low-income housing program commonly known as the "Section 8 Program." Rayford has been a participant in that program.
¶5 In 2013, the CDA notified Rayford that he would be terminated from the Section 8 Program for violating a program rule, the details of which are not pertinent to this appeal. Rayford exercised appeal rights available to him, and an "informal hearing" was held before a hearing officer designated by the CDA. At that hearing, Rayford challenged the CDA’s decision that, because of the rule violation, he should be terminated from the Section 8 Program. More particularly, Rayford argued to the hearing officer that termination of his benefits was disproportionate to the rule violation because of mitigating factors noted in 24 C.F.R. § 982.552(c)(2)(i) (2018).1 The hearing officer issued a written decision upholding the CDA’s decision to terminate Rayford’s Section 8 benefits.
¶6 Rayford filed a certiorari action against the CDA to challenge the hearing officer’s decision. Judge Peter Anderson2 agreed with Rayford that the hearing officer was required, pursuant to 24 C.F.R. § 982.552(c)(2)(i), to consider the mitigating factors set forth in that regulation. Judge Anderson also concluded that the hearing officer’s written decision did not adequately consider the mitigating circumstances set forth in that regulation and remanded the matter to the CDA for the hearing officer to issue another decision after considering those mitigating circumstances noted in the federal regulation.
¶7 On remand, the hearing officer issued a second written decision and again upheld the CDA’s decision to terminate Rayford’s Section 8 benefits. The hearing officer stated in her second decision that it was her understanding that it was not the hearing officer but the CDA that is responsible, in its initial decision to terminate Rayford’s benefits, for weighing the relevant mitigating factors under 24 C.F.R. § 982.552(c)(2)(i).
¶8 Rayford commenced a second certiorari action against the CDA. In that action, Rayford sought reversal of the hearing officer’s second decision arguing that the hearing officer did not comply with the previous order from Judge Anderson and the requirements of 24 C.F.R. § 982.552(c)(2)(i). Judge Anderson agreed with Rayford, vacated the hearing officer’s second decision, and ordered the CDA to appoint another hearing officer for Rayford’s case. Judge Anderson further ordered that, in "making a new written decision on whether [Rayford] should be terminated, the [CDA]’s new hearing officer shall independently consider all of the factors set forth in 24 C.F.R. § 982.552(c)(2)(i)."
¶9 The new hearing officer issued a decision concluding that "[u]nder all of the circumstances, Mr. Rayford’s failure to [comply with program rules] does not warrant termination of his participation in the Section 8 housing assistance program." As a result of that decision, the CDA restarted Rayford’s Section 8 benefits.
¶10 Rayford commenced this action against the CDA pursuant to 42 U.S.C. § 1983 (2012),3 seeking damages related to the loss of his Section 8 benefits.4 More specifically, the complaint alleges, and Rayford in briefing in this court contends, that the CDA’s second decision (which occurred after the remand from the first certiorari action) deprived Rayford of his due process rights.
¶11 Based on competing summary judgment motions, Judge Genovese concluded that Rayford’s right to due process was not violated because: (1) the acts of the hearing officer were random and unauthorized; and (2) Rayford had an adequate post-deprivation remedy of certiorari review in the state court. Rayford now appeals.
¶12 We will mention other pertinent facts in the discussion that follows.
¶13 Summary judgment must be granted when there is no genuine issue of material fact and a party is entitled to judgment as a matter of law. WIS. STAT . § 802.08(2) (2017-18).5 "We review de novo the grant or denial of summary judgment and apply the same methodology and standards as the circuit court." Town of Grant v. Portage Cty. , 2017 WI App 69, ¶8, 378 Wis. 2d 289, 903 N.W.2d 152. Here, because there are no disputed material facts, we must determine which party is entitled to judgment as a matter of law. Sec. 802.08(2) ; Town of Grant , 378 Wis. 2d 289, ¶12.
¶14 Rayford contends, and Judge Anderson determined in each of the two certiorari actions, that pursuant to 24 C.F.R. § 982.552(c)(2)(i) a hearing officer is required to apply the mitigating factors mentioned in that regulation without deference to the application, if any, of those factors in the CDA’s initial determination to terminate Rayford’s benefits. The CDA maintains that Judge Genovese interpreted that regulation in the same manner in this action. The CDA argues that the determinations by Judge Anderson and Judge Genovese are incorrect and, for that reason, Rayford’s cause of action fails. Because we resolve this appeal on other grounds, we assume without deciding that Rayford is correct that a hearing officer is required to apply the mitigating factors mentioned in § 982.552(c)(2)(i) without deference to the application, if any, of those same factors in the CDA’s initial determination to terminate Rayford’s benefits.
¶15 The CDA advances other arguments that we need not reach because we resolve this appeal on other grounds. Those arguments can be summarized as follows.
¶16 The CDA asserts that 24 C.F.R. § 982.552(c)(2)(i) does not apply to actions of the hearing officer because the regulation refers only to the "PHA" rather than the hearing officer. (The parties do not dispute that, in this context, the CDA is a PHA or "public housing authority.") We will assume without deciding that the reference in the regulation to the PHA includes a hearing officer appointed by a PHA.
¶17 Next, the CDA contends that Judge Anderson’s decision in the first certiorari lawsuit was confusing and, for that reason, the hearing officer was unsure what Judge Anderson ordered the hearing officer to do when the case was remanded. We assume without deciding that, in the first certiorari action, Judge Anderson’s order and his directions to the hearing officer were not confusing.
¶18 The CDA further argues that, on remand after the first certiorari action, the hearing officer applied the mitigating factors in 24 C.F.R. § 982.552(c)(2)(i) and conducted, in effect, a de novo application of the factors. We assume without deciding that the hearing officer did not perform a de novo application of those mitigating factors on remand after the first certiorari action.
¶19 The CDA also asserts that it is not legally responsible for the hearing officer’s actions. We will assume, without deciding, that there is no material distinction for purposes of our analysis between the hearing officer and the CDA, and the CDA may be legally responsible for the hearing officer’s actions.
¶20 A claim made pursuant to 42 U.S.C. § 1983 based on the due process clause of the Fourteenth Amendment to the United States Constitution requires a plaintiff to prove that he or she was "deprived of a constitutionally protected interest in life, liberty or property without due process of law." Jones v. Dane Cty. , 195 Wis. 2d 892, 913, 537 N.W.2d 74 (Ct. App. 1995). For such claims, a court must determine: (1) whether the conduct complained of was committed by a person acting under color of state law; (2) whether that conduct deprived the plaintiff of a constitutionally protected interest; and (3) whether the alleged deprivation occurred without due process of law. Easter House v. Felder , 910 F.2d 1387, 1394 (7th Cir. 1990) (citing Parratt v. Taylor , 451 U.S. 527, 535 (1981) ). The parties agree that, for purposes of summary judgment, Rayford has satisfied the first two elements. Our analysis will focus on whether the deprivation of Rayford’s property...
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